SOURCE: Sitestar Corporation

November 14, 2008 16:11 ET

Sitestar Reports Third Quarter 2008 Earnings

Company Surpasses FY 2007 Net Income Mark; On-Target for First $10MM-Plus Fiscal Year

LYNCHBURG, VA--(Marketwire - November 14, 2008) - Sitestar Corporation (OTCBB: SYTE), a provider of residential, business and wholesale Internet access, web hosting and value-added products and services, today reported quarterly results for the quarter ended September 30, 2008. The Company continued to deliver on its growth strategy, eclipsing Fiscal Year 2007 net income for the nine months ended September 30, 2008 and acquiring Velocity West, a Texas-based Internet Service Provider (ISP) and wholesale managed modem solution provider. Financial highlights for the quarter include:

--  Total Revenue for the three (3) months ended September 30, 2008 was
    $2,485,294, an increase of $1,003,408 or 67.7% from $1,481,886 for the same
    period in 2007.
    
--  Net Income for the three (3) months ended September 30, 2008 was
    $392,060, an increase of $207,316 or 112.2% from $184,744 for the same
    period in 2007.
    
--  Total Revenue for the nine (9) months ended September 30, 2008 was
    $7,644,538, an increase of $3,193,938 or 71.8% from $4,450,600 for the same
    period in 2007.
    
--  EBITDA (Earnings Before Interest, Taxes, Depreciation and
    Amortization) for the nine (9) months ended September 30, 2008 was
    $3,461,515, an increase of $1,748,708 or 102.1% from $1,712,807 for the
    same period in 2007.
    
--  Net Income for the nine (9) months ended September 30, 2008 was
    $1,092,939, an increase of $510,107 or 87.5% from $582,832 for the same
    period in 2007.
    

"Increased sales results driven by our expansive customer base comprised of narrowband, broadband and web hosting services and our thrifty, highly-efficient approach to operations which leverages our investments in wholesale managed modem services continue to propel Sitestar toward its first $10,000,000-plus fiscal year," said Frank R. Erhartic, Jr., CEO for Sitestar. "Despite the current challenging economic climate, Sitestar has never been financially stronger. Not only is net income significantly higher, but, more importantly, we have paid off our bank notes and are generating sufficient cash flow to act opportunistically to continue to fuel our growth."

Regarding the Company's future outlook, Mr. Erhartic commented, "Strong companies make bold strides during economic downturns. We believe that good, but monetarily weakened, ISPs will be increasingly more receptive to being acquired by Sitestar in this market. Similarly, we think that our high profit margin dial-up customers may be less likely to switch to more expensive but lower margin broadband service offerings in an economy where households seek to curtail discretionary monthly expenses. Being in a healthy financial position amidst weakened market conditions, we are confident about the future of Sitestar."

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements that are based on management's expectations, estimates, projections and assumptions. The Company assumes no obligation except as required by law to update the forward-looking statements contained in this press release as a result of new information or future events or developments. These forward-looking statements generally can be identified by words such as "believes," "expects," "projects," "anticipates," "foresees," "forecasts," "estimates," "should" or other words or phrases of similar import. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including and without limitation, as found in the Company's reports filed with the Securities and Exchange Commission.

About Sitestar

Sitestar is an Internet solutions provider that offers consumer and business-grade Internet access, wholesale managed modem services for downstream ISPs and Web hosting. Headquartered in Lynchburg, Virginia, Sitestar maintains multiple sites of operation and provides services to customers throughout the U.S. and Canada. With a focus on competitive pricing, reliability, service and speed, Sitestar delivers customer value. For more information, visit www.sitestar.com.

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